• DonnaLisa Albini-Knowles

Accepted Offer? How to Avoid Losing Your Financing

House hunting can be a great experience. Looking through the wide variety of options for your family

is exciting, and sometimes you find yourself looking at properties that you didn’t even know you could afford!

But after you find the perfect house prepare for some not-so-fun times: the financing process.

You might think that “you’re in” because you received a pre-approval or pre-qualification before looking at homes, but you’d be wrong! In truth, lenders are willing to provide you with a pre-approval after seeing a snapshot of your financial story. Then, they use a limited amount of information to decide whether or not you appear to be creditworthy. In short, nothing is final until you’re sitting at the closing table!

So what can you do between contract and closing to help ensure that your loan will be approved? Consider the following

  • No Big Purchases!- Between pre-approval and final approval, it’s imperative that you not make any big purchases or alterations to your financial picture that can impact your credit. While your lender checks your credit in the application process, they’ll also recheck it right before closing to ensure you haven’t slipped in your creditworthiness. So wait on that new furniture until after closing!

  • Honesty Pays- When filling out your loan application or providing documents to your lender, don’t fudge ANYTHING! You might think that giving yourself a little self-proclaimed bump in income or reducing expenses could do you favors, but you’d be asking for big trouble. Be accurate and honest when reporting items on your loan application. And remember, intentionally lying on your loan application or attempting to deceive your lender is a fraud, and it’s illegal!

  • Don’t Quit Your Day Job!- Or any other job! And don't cut down on your hours working. Changes in your income and employment are a big red flag for lenders and could cause them to deny your loan.

  • Follow Through with Contingencies- If you say in your contract or any other time in the purchase that you’re going to do something, do it. If you say you’re getting an inspection, get it ASAP.

  • Time is of the Essence- Don’t drag your feet with any part of your loan process. If your lender asks for something, get it as quickly as possible. Be sure to have funds ready to go throughout the process. This would include items like your inspection, appraisal, and funds you require at closing, like closing costs or down payment.

Buying a house is both exciting and terrifying for most buyers. Make the process a little less scary by following these guidelines to help ensure that your loan will survive the underwriting gauntlet!

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